Latest update April 19th, 2024 12:59 AM
Dec 24, 2018 News
The Guyana Forestry Commission (GFC) said that a new system of charging revenue was not implemented which negatively impacted their projected revenue earnings.
The Commission made the observation in its latest 2017 report that was tabled in the National Assembly on Friday.
Total revenue for 2017 was approximately $ 1.1B compared to the budget of $ 1.34B.
“It should be noted that the 2017 revenue budget was based on the assumption that the stumpage value system of charging revenue would have been implemented. However the system of charging acreage fees and royalties continues; this contributed to the revenue shortfall,” the report notes.
The deficit to meet expenses, according to the report, was met from GFC savings, and refunds of monies owed.
It was noted that the forest sector faced several challenges in 2017, among them being a lower domestic demand, reduced prices for tropical timber products, and a general contracting of international markets.
Concurrently, the report notes, several large forest concessions reverted to the state for reasons including expiration and non-renewal; and actions taken on others who were noncompliant with the terms and conditions of its contractual obligation to the state.
A total production level of 377,111m3 was recorded for 2017 as compared with 353,495m3 for January to December 2016; this represents a 7% increase in the 2017 total production level.
2017 total export value was US$39.1M, whilst total export revenue for 2016 totaled US$41.9M, a 6.7% decrease.
In the area of allocations, the GFC stated that following a public national and international process, two blocks from the former concession issued to Barama Company Limited (BCL) with area size of approximately 420,000 hectares each, were issued as State Forest Authorisations-State Forest Exploratory Permits (SFA-SFEP’s).
Additionally, two SFA-SFEP’s (Rong-An Inc. and Variety Woods and Greenheart Limited) were converted to SFA-Timber Sales Agreements (TSAs); repossessed concessions totaling approximately 350,000 hectares were advertised as 3 SFA-SFEPs.
GFC noted that this is expected to have an overall positive impact on production, export and revenue. Based on these considerations, by the end of 2018 revenue is projected at $ 1.366B, production at 400,000 m3, and
exports at US41.5M.
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Apr 19, 2024
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